HEARING DISCUSSED ONGOING EFFORTS TO REDUCE FRAUD AND IMPROPER PAYMENTS
Last week, the House Committee on Oversight and Accountability Subcommittee on Government Operations and the Federal Workforce held a hearing titled “Where Do We Go From Here? Examining a Path Forward to Assess Agencies’ Efforts to Prevent Improper Payments and Fraud.” Witnesses included representatives from the Pandemic Response Accountability Committee and the U.S. Government Accountability Office (GAO).
The hearing focused on existing oversight mechanisms within federal agencies to identify and prevent improper payments and fraud. It also explored how Congress can support ongoing efforts to mitigate these issues. Although this was not the first hearing on the topic, members of Congress are delving deeper into tools for future progress.
Chairman Pete Sessions (R-TX) opened the hearing with remarks referencing a recent staff report released by the committee, titled “Widespread Failures and Fraud in Pandemic Unemployment Relief Programs.”
According to a committee press release, the report details how states, including California, New York, and Pennsylvania, processed and administered pandemic unemployment insurance claims with minimal oversight, resulting in billions of taxpayer dollars lost to improper and fraudulent payments. The report also includes recommendations to prevent such issues in the future.
During the hearing, Michael Horowitz, chairman of the PRAC, emphasized the importance of the Pandemic Analytics Center of Excellence, or PACE, in addressing fraud. PACE helps agencies identify potential fraud by combining oversight data with a suite of analytic tools. Unlike other federal systems like Do Not Pay, which rely on static lists of known bad actors, PACE can identify potential anomalies on the front end, making it a necessary complement to Do Not Pay.
GAO representative Orice Brown highlighted several areas where federal agencies could improve, including fostering a cohesive culture regarding fraud risk management, assessing fraud risk, and implementing fraud controls on the front end. Browne invited the committee to continue its work by implementing the legislative recommendations provided in GAO’s report on payment integrity.
Linda Miller, CEO of the Program Integrity Alliance and a former PRAC and GAO employee, testified on four key issues:
Miller noted that data sharing is a significant barrier to addressing federal fraud and improper payments.
Access to data sets like the Death Master File and the new hire database remain a challenge. She also mentioned the ongoing tension between privacy and access. Horowitz agreed, stating that obtaining data agreements with agencies is a major issue and that the pay-and-chase model is no longer viable.
In concluding the hearing, ranking member Kweisi Mfume (D-MD) explained that the subcommittee has spent the past year developing a scorecard on the progress agencies are making on improper payments. Mfume reiterated the importance of the issue and called for the creation of an “omnibus antifraud act” to continue efforts in the next Congress. Chairman Sessions agreed, emphasizing the need for continued efforts and future meetings to advance the path forward.
The hearing focused on existing oversight mechanisms within federal agencies to identify and prevent improper payments and fraud. It also explored how Congress can support ongoing efforts to mitigate these issues. Although this was not the first hearing on the topic, members of Congress are delving deeper into tools for future progress.
Chairman Pete Sessions (R-TX) opened the hearing with remarks referencing a recent staff report released by the committee, titled “Widespread Failures and Fraud in Pandemic Unemployment Relief Programs.”
According to a committee press release, the report details how states, including California, New York, and Pennsylvania, processed and administered pandemic unemployment insurance claims with minimal oversight, resulting in billions of taxpayer dollars lost to improper and fraudulent payments. The report also includes recommendations to prevent such issues in the future.
During the hearing, Michael Horowitz, chairman of the PRAC, emphasized the importance of the Pandemic Analytics Center of Excellence, or PACE, in addressing fraud. PACE helps agencies identify potential fraud by combining oversight data with a suite of analytic tools. Unlike other federal systems like Do Not Pay, which rely on static lists of known bad actors, PACE can identify potential anomalies on the front end, making it a necessary complement to Do Not Pay.
GAO representative Orice Brown highlighted several areas where federal agencies could improve, including fostering a cohesive culture regarding fraud risk management, assessing fraud risk, and implementing fraud controls on the front end. Browne invited the committee to continue its work by implementing the legislative recommendations provided in GAO’s report on payment integrity.
Linda Miller, CEO of the Program Integrity Alliance and a former PRAC and GAO employee, testified on four key issues:
- Federal agencies’ inability or unwillingness to access and use data.
- Agency leaders’ reluctance to discuss fraud.
- Lack of incentives or mandates for agency leaders to address the issue.
- Agencies not prioritizing necessary tools to address and prevent fraud.
Miller noted that data sharing is a significant barrier to addressing federal fraud and improper payments.
Access to data sets like the Death Master File and the new hire database remain a challenge. She also mentioned the ongoing tension between privacy and access. Horowitz agreed, stating that obtaining data agreements with agencies is a major issue and that the pay-and-chase model is no longer viable.
In concluding the hearing, ranking member Kweisi Mfume (D-MD) explained that the subcommittee has spent the past year developing a scorecard on the progress agencies are making on improper payments. Mfume reiterated the importance of the issue and called for the creation of an “omnibus antifraud act” to continue efforts in the next Congress. Chairman Sessions agreed, emphasizing the need for continued efforts and future meetings to advance the path forward.